It's a similar insight that made Maruti create the Ertiga. "Today, most cars sold are in the A2 segment," says Mayank Pareek, managing executive officer (marketing and sales), Maruti Suzuki. "Typically, after a few years, they would want to upgrade to a sedan but sedans aren't often exciting. In comparison, most utility vehicles come across as big and fuel inefficient. So, we designed the Ertiga at an affordable price point with the convenience of a UV and the mobility of a city vehicle...big on the inside and small outside."

In some ways, India's love for utility vehicles runs parallel to M&M's growth as a UV giant. Today, Mahindra has a 55% market share in the passenger UV segment. The Bolero is still going strong, selling over 1 lakh units last year while the Scorpio breached the 50,000 units sales mark in the same period. M&M started off selling the iconic Willys jeeps in India in 1947. For the next five decades, M&M's jeeps were synonymous with ruggedness and durability. In 2000, M&M launched the Bolero, a hardy 'people mover' — a year after the foundation stone for the ambitious Golden Quadrilateral project was laid.

In the next decade, as India built highways and inter-city roads like never before, people began to drive. "Earlier, a road trip from Bangalore and Chennai or Mumbai to Pune would be quite an event. Today, you can get to Pune from Mumbai in a little over 2 hours," says Nitish Tipnis, director — marketing and sales at Hover Automotive India (HAI), Nissan India's sales and marketing partner. Tipnis says improved road connectivity in India is among the reasons why the UV category, especially the SUV segment, has grown in leaps and bounds.

More importantly, as Mahindra's Shah puts it: "Disposable incomes are increasing, lifestyles have changed. People like to associate themselves with an 'SUV persona'." Mahindra was among the earliest to cash in on this change by launching the Scorpio in June 2002. The Scorpio was a game-changer for Mahindra: it cracked wide open the fast-growing urban market for the company.

In January 2009, M&M launched the Xylo, at "a segment little lower than the Scorpio". "We wanted to dominate the UV market," says Rajan Wadhera, chief executive — technology, product development and sourcing, automotive. M&M had surveyed over 1,100 prospective customers "who were graduating from a Bolero or were looking for a rugged UV". What emerged from this exercise was fascinating: most customers wanted a vehicle which had "space and luxury, felt safe, and did not feel boxy with very flat sides". Therefore, the Xylo, which opened to great reviews, was a curvy vehicle throwing in features like foldable food trays and a compartment to lock valuables.

The next launch for Mahindra was the XUV500 — this time "a segment above the Scorpio." M&M surveyed sedan owners (Rs 6-10 lakh category) who were looking for an upgrade. The results: customers wanted more aggressive styling. "Typically, cars that Indians are exposed to are designed abroad. In Europe and the US, the cars don't look that aggressive...the outer design is muted. The Indian customer is a little more showy," says Wadhera. So, Wadhera and his team of designers looked at a raft of muses — Bruce Lee, Spiderman, and Maximus Decimus Meridius (from the movie Gladiator) — before homing in on the cheetah as the inspiration for the XUV.

A preference for the macho stuff isn't the only unique thing about the Indian UV segment. "Pickups haven't taken off in India," says Frost and Sullivan's Ramakrishnan. "While MUVs like pickups are used as both in other markets, in India, they are used either as a personal or a commercial vehicle," he adds.

Indian Unique Vehicles

Also, Indians are fans of the big engine rides that are popular in developed markets. "Globally, SUVs typically have large engines, four wheel drivetrains and are loaded with comfort and safety features. In India, many OEMs have lowered the specifications to meet the price expectations of an aspiring first time SUV buyer," says Kapil Arora, partner, automotive practice, Ernst & Young, a consultancy. The Indian vehicle buyer, though, is fuel-efficiency conscious. "Even a guy who buys a Mercedes Benz in India would ask: kitna average deti hai?"

Some analysts disagree with that statement, especially when it comes to high-end SUVs. "Does a guy who buys a vehicle for Rs 25 lakh care about diesel prices?" asks an analyst. Either way, everybody agrees that the excitement and growth in the UV and SUV segments will continue, partly because of the smaller base and partly due to a slew of exciting launches.